TORONTO — Lundin Mining Corp. is selling its stake in TF Holdings, owner of the Congolese Tenke mine, to a Chinese private equity firm for $1.5 billion, as part of a transfer of ownership of the mine to Chinese companies.
The Toronto-based zinc, copper and nickel producer said Tuesday it has a definitive agreement to sell its 30 per cent indirect interest in the Bermuda holding company that owns an 80 per cent stake in Tenke Fungurume Mining.
As part of the deal with China’s BHR Partners, Lundin waived its right to acquire Freeport McMoRan’s majority stake in the holding company. Freeport announced in May it had reached a deal to sell its 56 per cent interest in the company to China Molybdenum Co. for US$2.65 billion.
The Freeport deal forced Lundin into a decision to prevent or allow the deal, or sell its stake. Tuesday’s announcement came the same day as a deadline to scuttle the Freeport-China Molybdenum deal and buy Freeport’s stake, after being granted several extensions.
Lundin president and CEO Paul Conibear said the decision to sell its effective 24 per cent stake in the mine was not easy. “The decision to sell our minority interest in Tenke has been arrived at following a careful and lengthy consideration of all options open to us,” he said.
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